Willis Towers Watson collaborates on world-first post-hurricane insurance protection for endangered Mesoamerican Coral Reef

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[{"type":"text","content":"Blue economy breakthrough on parametric financing to support reef restoration and local economic recovery off Mexico, Belize, Guatemala, and Honduras\nLONDON, June 03, 2021 (GLOBE NEWSWIRE) -- Willis Tower Watson (NASDAQ: WLTW), a leading global advisory, broking, and solutions company, today announced the launch of a multinational partnership project with the Mesoamerican Reef Fund to develop and implement insurance solutions that help protect and restore the 1,000km reef system along the Caribbean coast. The goal of the Mesoamerican Reef Insurance Programme is the first multinational collaboration that will design and implement parametric insurance covering hurricane risk to the Mesoamerican Reef (MAR) and the communities that depend on it for protection, food security, and livelihoods. Pilot coverage for key reef sites in Mexico, Belize, Guatemala, and Honduras will enhance the climate resilience of almost 2 million beneficiaries. The Mesoamerican Barrier Reef System is listed as critically endangered by the IUCN Red List of Ecosystems and is home to 65 species of coral and more than 500 species of fish, as well as many other protected marine species. Coastal wetlands, lagoons, mangrove forests, and seagrass beds also protect against storms and coastal erosion. As the effects of climate change and other stressors exert increasing pressure on the reef, the risk of a hurricane impact leading to irreversible coral degradation and mortality has grown. Early action to clean up the reef and jump-start regeneration and recovery is critical to reducing the overall impact of lost ecosystem services—in both social and economic terms. However, the restoration of natural ecosystems is often not a priority in the aftermath of extreme events, as resources are focused mainly on grey infrastructure and property. The project is being co-funded and implemented by Willis Towers Watson and the Mesoamerican Reef Fund (MAR Fund), the regional financing mechanism for large-scale maintenance, conservation, and restoration of the reef system. MAR Fund will be the policyholder of the insurance programme. John Haley, chief executive officer of Willis Towers Watson, said: “In 2018, we launched the Global Ecosystem Resilience Facility at the World Ocean Summit in Cancun. We are delighted to be back in central America, partnering with the MAR Fund and sup...

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